PDIC Regulatory Issuance No. 93-1 (1993)

(NAR) VOL. IV NO. 4 / OCTOBER-DECEMBER 1993

[ PDIC REGULATORY ISSUANCE NO. 93-1, November 09, 1993 ]

REPORTORIAL REQUIREMENTS OF THE PHILIPPINE DEPOSIT INSURANCE CORPORATION

Pursuant to Sections 8(8), 9 (c), and 16 (f) of R.A. 3591, as amended, the PDIC Board of Directors, in its resolution No. 93-008-109 dated August 27, 1993, approved a revision in the reportorial requirements from all member banks, including the reduction in both the number of reports to be submitted and in the frequency of report submission to the Corporation. The revised requirements are embodied in the attached Annex A*. Other reportorial requirements of the Corporation nor specifically mentioned in the attached Annex shall remain in effect until superseded by a later regulatory issuance. In view of the revisions as embodied in Annex A, the Corporation has likewise established measures to ensure the compliance with these requirements through the imposition of fines and penalties to delinquent or erring banks, their directors and/or officers. All member banks shall therefore be guided accordingly. Definition of Terms 1. Regular PDIC Reports shall refer to all reports of condition and such other reports and statements required of all member banks to be submitted regularly to the Philippine Deposit Insurance Corporation in accordance with the prescribed form, frequency and deadlines set forth in a regulatory issuance.

2. Reports of condition shall refer to balance sheets, income and expense statements and all their supporting schedules, including but not limited to breakdown of deposit liabilities by type and size.

3. Special reports shall refer to reports and statements other than the regular PDIC reports which may be required from time to time to be submitted by banks as deemed necessary by PDIC in the performance of its regulatory authority.

4. Erroneous and misleading information shall refer to mathematical inaccuracies, materials omissions, and/or inconsistencies or discrepancies between the main reports and their supporting schedules/attachments, and which are clearly not merely typographical in nature.

5. Incomplete reports shall refer to those reports without the required supporting schedules/attachments.

6. Willful delay means a deliberate and unjustified failure by a member bank tosubmit reports and information required by the Corporate despite due demands for submission thereof.

7. Fortuitous events shall refer to events or circumstances entirely beyond the control of the member bank, its director and/or officers, such as fire, natural calamities and public disorder.

8. Banking days shall be understood to mean Monday to Friday but excluding legal holidays or such other days declared by the proper government authority as non-working days. Fines and Penalties 1. Should a bank fail to submit its reports of condition within five (5) days after the prescribed deadlines; the Corporation shall send the delinquent bank a letter-reminder and simultaneously impose a penalty of One Hundred Pesos (P100) a day. The P100 per day penalty shall continue to be imposed until such time that compliance has been made until the bank, its directors and/or officers have been declared in willful delay in the submission of reports. Unless the failure to submit a report is due to a fortuitous event, delay shall start to run after the prescribed deadline and shall continue until the report is submitted. However, should the last day of filing fall on a non-banking day, delay shall start to run on the day following the next banking day.

2. Banks failing to submit requirements other than reports of condition after their prescribed deadlines shall be routinely reminded to comply.

3. A bank continuously failing to submit the same reportorial requirement for two consecutive reporting periods shall be sent a final demand letter. The letter shall include a warning that further failure to comply within fifteen days from the bank's receipt of the letter shall constitute willful delay in the submission of reports and which may subject the bank, its directors and/or officers to a fine of not more than P1,000 a day as may be imposed by the Board of Directors.

4. The fine imposed by the PDIC Board of Directors for the willful delay in the submission of reports shall continue to accrue until the bank has complied with the reportorial requirements.

5. Banks submitting erroneous, misleading, or incomplete reports of condition or such other information as may be required by the Corporation may be regarded as not having complied with the reporting requirements and may be subject to the same fines, penalties and sanctions for delay in the submission of reports.

6. If the report submitted is under the signature of an officer who is not duly authorized, PDIC shall consider the report as not having been submitted. If such a report is not re-submitted by the member bank under the signature of a duly authorized signing officer, sanctions/penalties shall be imposed on the erring bank for late reporting or failure to submit the required reports, as the case may be.

7. All payments of penalties and fines by the bank must be made in checkpayable to the Corporation and shall be sent by personal service or registered mail addressed to the Treasury Department.

8. The imposition of the above penalties shall be without prejudice to the application of such other sanctions as the PDIC Board of Directors may deem appropriate. To assure the integrity of information, the Corporation shall hold accountable the directors and/or officers of all member banks for the completeness and accuracy of reports being submitted. Consequently, all member banks are to be guided by the following:

1. Reports to PDIC shall be signed by duly designated officers or their alternates. Reports of branches/offices shall be signed by the respective managers/officers-in-charge PDIC shall be formally advised of any changes in the designated officers and alternates and furnished their specimen signatures.

2. For banks that opt to submit reports in computer diskette, the accompanying "control/proof list" of the diskette shall be subject to the same requirements regarding authorized signatories as the report it replaces. This Regulatory Issuance further requires all member banks to submit to the Corporation not later than 30 calendar days upon receipt a list of authorized signatories to bank reports together with their specimen signatures. For your guidance and strict compliance. Adopted: 9 Nov. 1993

(Sgd.) VITALIANO N. NAÑAGAS II President APPENDIX V ANNEX A Revised PDIC Reportorial Requirements Form No. Description Old Date of Revised Date of Submission Submission SES I Form Consolidated Statement of 7 banking days These reports shall be 2A.1 CBP Condition and supporting after end of required on a quarterly 7-16-05 schedule for commercial reference basis and shall be SES I Form banks month submitted to the PDIC on 2A.2 CBP or before 20 banking days 7-16-05 after the end of the reference quarter SES I Form 3A Consolidated Statement of 20 banking CBP Income, Expense and days after end 7-16-04 Surplus (Free) of calendarquarter/year SES II Form 2 Consolidated Statement of For SMBs & Condition and supporting PDBs: 7 schedules for thrift banks banking days after end of reference month For SLAs: 10 days after end f reference month Schedule II Consolidated Statement of For SMBs & Form 5 Income, Expense and PDBs: 7 Surplus banking days after end of calendar quarter/year CBP 7-19-04A Consolidated Statement of 10th day after Condition and supporting end of month schedules for rural banks CBP 7-19-05A Consolidated Statement of 10th day after Income, Expense and end of Surplus reference month None Auditor’s report (including Not later than April 15 of any tentative issuances) each year None Management Reports from Not later than 5 banking both Internal and External days subsequent to its Auditors submission to the bank’s Board of Directors None Breakdown of all Deposit Not later than This report shall be Liabilities by Type the third week required on semi-annual (excluding rural banks following the basis and shall be without branches) end of each submitted to the PDIC on quarter or before 15 banking days after the end of reference semester Breakdown of all deposit Not later than Not Required Liabilities by Type (for the third week rural banks without following the branches) end of each quarter CBP 7-16-02 Statement of Condition by 20 banking Upon specific request banking unit days after end of calendar quarter/year CBP 7-16-04 Statement of income and 20 banking Upon specific request expense by banking unit days after endof calendar quarter/year CBP 7-16-31 Sworn Statement on Real 10 banking Upon specific request Estate Transactions days after approval of transaction CBP 7-16-15a Availments of Financial 15 banking Upon specific request Assistance Officers and days after end Employees under Central semester Bank Approved Plan CBP 7-16-18 Biographical Data 25 banking Upon specific request days after end of calendar year * See Appendix V, Revised PDIC Reportorial Requirements